LetsGo Inc. sponsors a defined benefit plan and determined that for the current year of 2020, service cost was $400,000, amortization of prior service cost was $2,880, interest cost was $33,760, and the expected (and actual) return on plan assets was $28,800. LetsGo will contribute $72,000 to the plan for 2020 and payments to retirees totaled $24,000 in 2020. Record the journal entries for pension expense, to fund the plan, and to pay benefits for 2020. Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. Date Account Name Dr. Cr. Dec. 31, 2020 CashPlan AssetsAccrued Pension LiabilityProjected Benefit ObligationOCI—Pension Gain/LossOCI—Prior Service CostPension Expense CashPlan AssetsAccrued Pension LiabilityProjected Benefit ObligationOCI—Pension Gain/LossOCI—Prior Service CostPension Expense CashPlan AssetsAccrued Pension LiabilityProjected Benefit ObligationOCI—Pension Gain/LossOCI—Prior Service CostPension Expense CashPlan AssetsAccrued Pension LiabilityProjected Benefit ObligationOCI—Pension Gain/LossOCI—Prior Service CostPension Expense To record pension expense Dec. 31, 2020 CashPlan AssetsAccrued Pension LiabilityProjected Benefit ObligationOCI—Pension Gain/LossOCI—Prior Service CostPension Expense CashPlan AssetsAccrued Pension LiabilityProjected Benefit ObligationOCI—Pension Gain/LossOCI—Prior Service CostPension Expense To record plan funding Dec. 31, 2020 CashPlan AssetsAccrued Pension LiabilityProjected Benefit ObligationOCI—Pension Gain/LossOCI—Prior Service CostPension Expense CashPlan AssetsAccrued Pension LiabilityProjected Benefit ObligationOCI—Pension Gain/LossOCI—Prior Service CostPension Expense To record benefit payments
LetsGo Inc. sponsors a defined benefit plan and determined that for the current year of 2020, service cost was $400,000, amortization of prior service cost was $2,880, interest cost was $33,760, and the expected (and actual) return on plan assets was $28,800. LetsGo will contribute $72,000 to the plan for 2020 and payments to retirees totaled $24,000 in 2020. Record the journal entries for pension expense, to fund the plan, and to pay benefits for 2020. Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. Date Account Name Dr. Cr. Dec. 31, 2020 CashPlan AssetsAccrued Pension LiabilityProjected Benefit ObligationOCI—Pension Gain/LossOCI—Prior Service CostPension Expense CashPlan AssetsAccrued Pension LiabilityProjected Benefit ObligationOCI—Pension Gain/LossOCI—Prior Service CostPension Expense CashPlan AssetsAccrued Pension LiabilityProjected Benefit ObligationOCI—Pension Gain/LossOCI—Prior Service CostPension Expense CashPlan AssetsAccrued Pension LiabilityProjected Benefit ObligationOCI—Pension Gain/LossOCI—Prior Service CostPension Expense To record pension expense Dec. 31, 2020 CashPlan AssetsAccrued Pension LiabilityProjected Benefit ObligationOCI—Pension Gain/LossOCI—Prior Service CostPension Expense CashPlan AssetsAccrued Pension LiabilityProjected Benefit ObligationOCI—Pension Gain/LossOCI—Prior Service CostPension Expense To record plan funding Dec. 31, 2020 CashPlan AssetsAccrued Pension LiabilityProjected Benefit ObligationOCI—Pension Gain/LossOCI—Prior Service CostPension Expense CashPlan AssetsAccrued Pension LiabilityProjected Benefit ObligationOCI—Pension Gain/LossOCI—Prior Service CostPension Expense To record benefit payments
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 1E
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Question
Recording Pension Expense, Plan Funding, Benefit Payments
LetsGo Inc. sponsors a defined benefit plan and determined that for the current year of 2020, service cost was $400,000, amortization of prior service cost was $2,880, interest cost was $33,760, and the expected (and actual) return on plan assets was $28,800. LetsGo will contribute $72,000 to the plan for 2020 and payments to retirees totaled $24,000 in 2020. Record the
- Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order.
Date | Account Name | Dr. | Cr. |
---|---|---|---|
Dec. 31, 2020 | CashPlan AssetsAccrued Pension LiabilityProjected Benefit ObligationOCI—Pension Gain/LossOCI—Prior Service CostPension Expense | ||
CashPlan AssetsAccrued Pension LiabilityProjected Benefit ObligationOCI—Pension Gain/LossOCI—Prior Service CostPension Expense | |||
CashPlan AssetsAccrued Pension LiabilityProjected Benefit ObligationOCI—Pension Gain/LossOCI—Prior Service CostPension Expense | |||
CashPlan AssetsAccrued Pension LiabilityProjected Benefit ObligationOCI—Pension Gain/LossOCI—Prior Service CostPension Expense | |||
To record pension expense | |||
Dec. 31, 2020 | CashPlan AssetsAccrued Pension LiabilityProjected Benefit ObligationOCI—Pension Gain/LossOCI—Prior Service CostPension Expense | ||
CashPlan AssetsAccrued Pension LiabilityProjected Benefit ObligationOCI—Pension Gain/LossOCI—Prior Service CostPension Expense | |||
To record plan funding | |||
Dec. 31, 2020 | CashPlan AssetsAccrued Pension LiabilityProjected Benefit ObligationOCI—Pension Gain/LossOCI—Prior Service CostPension Expense | ||
CashPlan AssetsAccrued Pension LiabilityProjected Benefit ObligationOCI—Pension Gain/LossOCI—Prior Service CostPension Expense | |||
To record benefit payments |
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